field of telecommunications has appeared in
Vietnam for more than 30 years and has helped the business environment and
social life of Vietnam to develop. The process of liberalizing the
telecommunications sector in Vietnam has led to the expansion of the
telecommunications network and has become an attractive field for investors to
set up company in telecom service, internet service, or join with Vietnamese
partner on business cooperation contract in the same fields.
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Telecommunication
Lawyers in Vietnam
Currently, telecommunications services are
not just telephones and telex, but variy with many types from simple to complex
such as audio, video, data transmission services,… Besides the conveniences
brought in life, telecommunications services have really become one of the
important infrastructures of the economy. However, Vietnam government also
impose certain requirements on foreign investors entering Vietnam in this
sector.
Specifically, at present, foreign investors
can only participate in investments in the form of joint ventures or business
cooperation contracts with Vietnamese enterprises to provide telecommunications
services. However, for the provision of services with network infrastructure,
the partner in which the investor joins the joint venture must be a licensed
telecommunications service provider in Vietnam. In addition, foreign investors
are also limited on the percentage of charter capital in joint ventures.
Accordingly, for services without network infrastructure, foreign investors own
not more than 65% of charter capital and for services with network
infrastructure, foreign investors do not own more than 49% legal capital of the
joint venture.
On the other hand, foreign investors
participating in business cooperation contracts will be able to sign a new
agreement or switch to another form of presence with conditions no less
favorable than those they are currently receiving. Furthermore, an organization
or individual that already owns more than 20% of the charter capital or shares
in a telecommunications enterprise may not own more than 20% of the charter
capital or shares of another telecommunications enterprise doing business in
the same company a market for telecommunications services.
Therefore, if the investor meets the above
conditions, the investor will carry out the procedures for establishing an
economic organization. Like other foreign-invested organizations, the
establishment will go through two stages: investment registration and business
establishment. For foreign investment projects in the business of
telecommunications services, it is necessary to receive the investment approval
of the Prime Minister. Accordingly, the investor submits
the application for approval of the investment policy of the investment project
to the investment registration agency and within 03 working days from the date
of receipt of the complete dossier, the investment registration agency submit
the application for appraisal opinions of the Ministry of Information and
Communications. Within 15 days from the date of receipt of the dossier, the
Ministry of Information and Communications shall give its appraisal opinions on
the extent under its state management and send it to the Ministry of Planning
and Investment. Within 40 days from the day on which the application is
received, the investment registration agency shall organize the appraisal of
the dossier and make an appraisal report and submit it to the Prime Minister
for approval of the investment policy. After receiving the approval of the
investment policy, the investor proceeds to establish the business as domestic
entities.
The telecommunication services are subject to
strong regulations hence the conditions for foreign investors to invest and set
up company in telecommunication services or take part in providing
telecommunication services are also relatively complicated. Therefore,
investors are suggested to undertake research on telecommunication regulatory
specific to their business with the help of telecommunication
services lawyers in Vietnam to make the investment effectively.
Professionals at ANT Lawyers work on many a
variety of telecommunications, media and technology transactions and cases. Our
attorney’s industry knowledge and expertise allow us to effectively support the
information technology sector. We could deliver the experience and expertise
needed to handle issues in both private practice and in corporate and regulatory
bodies.
You could learn more about
ANT Lawyers TMT Practice or contact our TMT lawyers in Vietnam for
advice via email ant@antlawyers.vn or call
our office at (+84) 24 730 86 529
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